Economic Growth and Employment


The CBRT Law stipulates that “The Bank shall, provided that it shall not be in confliction with the objective of achieving and maintaining price stability, support the growth and employment policies of the Government.” Low inflation is among the prerequisites of achieving long-term economic objectives. Therefore, the chief contribution by the CBRT to policies aiming at economic growth and employment would be to maintain price stability. 
Ultimately, stable prices help economic agents make well-informed decisions, thereby enhancing the efficiency of resource allocation. In addition, the reduction in the inflation risk premium due to low inflation levels reduces real interest rates, which supports investment decisions.